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Notes to Accounts of Welspun Investments & Commercials Ltd.

Mar 31, 2016

transactions have taken place during the year__

Notes:

a) The related party relationships have been determined by the management on the basis of the requirements of the Accounting Standard (AS) - 18 ''Related Party Disclosures'' and the same have been relied upon by the auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the related party.

As the Company has carry forward losses and there is no virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which deferred tax assets can be realized, deferred tax assets as at 31 March 2016 and as at 31 March 2015 have not been recognized.

1 COMMITMENTS AND CONTINGENT LIABILITIES NOT PROVIDED FOR

Guarantee given by the Company to Punjab National Bank for repayment of liabilities of MEP Cotton Limited of '' 107,023,661 (Previous year: ''107,023,661).

2 a) During the year, a Scheme of Arrangement ("The Scheme") between Welspun Steel Limited (Demerged Company

), WS Trading and Holding Private Limited (Resulting company 1) and WS Alloy Holding Private Limited (Resulting company 2) under section 391 to 394 read with section 100 to 103 of the Companies Act, 1956 for Demerger of Trading Undertaking to WS Trading and Holding Pvt Limited (Resulting Company 1) and Alloy Steel Undertaking to WS Alloy Holding Private Limited (Resulting Company 2) was sanctioned by the Hon''ble High Court of Gujarat at Ahmadabad vide its order dated 23 February 2015 a certified copy whereof issued on 10 April 2015 . The scheme was filed with Ministry of Corporate Affairs on 9 May 2015 and the scheme became effective from 9 May 2015 ("Effective date") with 1 April 2014 as the "Appointed Date".

b) Pursuant to the scheme, 1 (One) fully paid up equity share of WS Trading and Holding Private Limited, face value ''10 each was allotted to the equity shareholders of Welspun Steel Limited for every 20 (Twenty) shares of Rs, 10 each held by them in Welspun Steel Limited.

c) Pursuant to the scheme, 1 (One) fully paid up Equity share of WS Alloy Holding Private Limited, face value Rs, 10 each was allotted to the Equity shareholders of Welspun Steel Limited for every 20 (Twenty) shares of Rs, 10 each held by them in Welspun Steel Limited.

Pre-demerger cost of investment in equity shares of Welspun Steel Ltd. was allocated amongst the three companies after demerger as under :-

3 Based on information received by the Company from its suppliers, amounts due to Micro and Small Enterprises as at 31 March 2016 is Rs, Nil (as at 31 March 2015 Rs, Nil).

4 In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

5 The Central Government in consultation with National Advisory Committee on Accounting Standards has amended Companies (Accounting Standards) Rules, 2006 ("principal rules") vide notification issued by Ministry of Corporate Affairs dated March 30, 2016. The Companies (Accounting Standards) Rules, 2016 is effective w.e.f. March 30, 2016. The Company believes that the Rule 3(2) of the principal rules has not been withdraw an or replaced and accordingly, the Companies (Accounting Standards) Rules, 2016 will apply for the accounting periods commencing on or after March 30, 2016.

6 The Company has one associate i.e. MEP Cotton Limited for which no financial statements are available after the year ended 31 March 2012. The Company has made provision for diminution in value of investment in MEP Cotton Limited to the extent of investment value.

In view of the above, the Company has not prepared consolidated financial statements as required under section 129(3) of the Companies Act, 2013.

7 Previous year''s figures have been re-grouped / re-classified, wherever necessary to conform to the current year''s presentation.


Mar 31, 2015

1. GENERAL INFORMATION:

Welspun Investments and Commercials Limited ("the Company") was incorporated on 07 October 2008 under the Companies Act, 1956 (the 'Act') and has its registered office at Welspun City, Village: Versamedi, Taluka: Anjar, Dist. - Kutch, Gujarat 370110. The Company is engaged in business of Investment and dealing in shares and securities and trading of textile products and commodities.

2. SHARE CAPITAL

a. Terms / rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting. During the year ended 31 March, 2015, the Company has not declared / proposed any dividend (31 March 2014: Nil).

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by shareholders.

b. During the year, there has been no movement in number of issued, subscribed and paid up equity shares.

c. The Company has neither issued any shares for consideration other than cash or as bonus shares nor any shares issued had been brought back by the Company during the last five years.

3. SEGMENT REPORTING:

The Company has two business segments viz. Investment and dealing in shares and securities (Finance) and Trading of textile products and related accessories (Trading), which is being considered as the primary segment in accordance with Accounting Standard (AS)-17 "Segment Reporting".

4. Related party Disclosures:

i) Related party relationships:

Enterprises over which key management Welspun Realty Private personnel or relatives of key management Limited personnel exercise significant influence or control and with whom transactions have taken place during the year

Notes:

a) The related party relationships have been determined by the management on the basis of the requirements of the Accounting Standard (AS) - 18 'Related Party Disclosures' and the same have been relied upon by the auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the related party.

5. COMMITMENTS AND CONTINGENT LIABILITIES NOT PROVIDED FOR

Guarantee given by the Company to Punjab National Bank for repayment of liabilities of MEP Cotton Limited of Rs. 107,023,661 (Previous year: Rs.107,023,661).

6. Based on information received by the Company from its suppliers, amounts due to Micro and Small Enterprises as at 31 March 2015 is Rs. Nil (as at 31 March 2014 Rs. Nil).

7. In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

8. Previous year's figures have been re-grouped / re-classified, wherever necessary to conform to the current year's presentation.


Mar 31, 2014

1. GENERAL INFORMATION

Welspun Investments and Commercials Limited ("the Company") was incorporated on 07 October 2008 under the Companies Act, 1956 (the ''Act'') and has its registered office at Welspun City, Village: Versamedi, Taluka: Anjar, Dist. – Kutch, Gujarat 370110. The Company is engaged in business of Investment and dealing in shares and securities and trading of textile products and commodities.

2 SEGMENT REPORTING:

The Company has two business segments viz. Investment and dealing in shares and securities (Finance) and Trading of textile products and related accessories (Trading), which is being considered as the primary segment in accordance with Accounting Standard (AS)-17 "Segment Reporting".

3 Related party Disclosures:

i) Related party relationships:

a) Associates MEP Cotton Limited

b) Enterprises over which key management personnel or relatives of key

1. Krishiraj Trading Limited management personnel exercise significant infuence or control and with

2. Welspun realty Pvt. Ltd.

whom transactions have taken place during the year

Notes:

a) The related party relationships have been determined by the management on the basis of the requirements of the Accounting Standard (AS) - 18 ''Related Party Disclosures'' and the same have been relied upon by the auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the related party.

4 COMMITMENTS AND CONTINGENT LIABILITIES NOT PROVIDED FOR

Guarantee given by the Company to Punjab National Bank for repayment of liabilities of MEP Cotton Limited of Rs. 107,023,661.

5 Based on information received by the Company from its suppliers, amounts due to Micro and Small Enterprises as at 31 March 2014 is Rs.. Nil (as at 31 March 2013 Rs. Nil).

6 In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

7 Previous year''s figures have been re-grouped / re-classified, wherever necessary to conform to the current year''s presentation.


Mar 31, 2013

1. GENERAL INFORMATION

Welspun Investments and Commercials Limited ("the Company") was incorporated on 07 October 2008 under the Companies Act, 1956 (the ‘Act'') and has its registered office at Welspun City, Village : Versamedi, Taluka - Anjar, Dist. – Kutch, Gujarat – 370110. The Company is engaged in business of Investment and dealing in shares and securities and trading of textile products and commodities.

2 Based on information received by the Company from its suppliers, amounts due to Micro and Small Enterprises as at 31 March 2013 is T. Nil (as at 31 March 2012 T Nil).

3 In the opinion of management, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

4 Previous year''s figures have been re-grouped / re-classified, wherever necessary to conform to the current year''s presentation.


Mar 31, 2012

See accompanying notes to the financial statements

a. Terms / rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The dividend, if any proposed by Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting. During the year ended 31 March, 2012, the Company has not declared any dividend. (31 March 2011:NIL)

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by shareholders.

* The above loan carries interest @ 10.20% p.a. till 12 October 2011 and @ 11% p.a. thereafter.

1 SEGMENT REPORTING:

The Company has two business segments viz. Investment and dealing in shares and securities (Finance) and Trading of products, which is being considered as the primary segment in accordance with Accounting Standard (AS)-17 "Segment Reporting".

a) The related party relationships have been determined by the management on the basis of the requirements of the Accounting Standard (AS) - 18 'Related Party Disclosures' and the same have been relied upon by the auditors.

b) The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the year, except where control exist, in which case the relationships have been mentioned irrespective of transactions with the related party.

2 Based on information received by the Company from its suppliers, amounts due to Micro and Small Enterprises as at 31 March 2012 is Rs. Nil (as at 31 March 2011 Rs. Nil).

3 In the opinion of management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably stated.

4 Previous year's figures have been re-grouped / re-classified, wherever necessary to conform to the current year's presentation.


Mar 31, 2010

1. The Companys scheme of arrangement in the nature of Demerger and Reconstruction of Capital under Section 78, 100, 391 to 394 of the Companies Act, 1956 and transfer of Investment and Treasury Division of Welspun India Limited. To Welspun Investments and Commercials Limited was approved by the Honble High Court of Gujarat vide its Order dated 8th May09

Pursuant to the Order, Asset and Liabilities of the Investment and Treasury Division of Welspun India Ltd were transferred to Welspun Investments and Commercials Ltd w.e.f. appointed date (1st April09). Upon the transfer, the Company has issued 1 equity share of Rs.10/- each as fully paid up to the Shareholders of Welspun India Ltd for every 20 equity shares held by them in Welspun India Ltd.

Further 50,000 equity shares of Rs. 10 each fully paid up held by Welspun India Limited have been cancelled, upon the Scheme becoming effective.

2. In accordance with the Accounting Standard AS-26 Intangible Assets, the Company has changed its accounting policy in respect of preliminary expenses, which is now fully written off instead of amortising over the period of five years up to previous period. Due to the above change in the accounting policy profit before tax for the period and preliminary expenditure as at 31 March 2010 are lower by Rs. 207,751.

3. Segmental reporting

The Company has two business segment viz. Investment and dealing in shares and securities and Trading of textile products and related accessories., which is being considered as the primary segment in accordance with Accounting Standard (AS)-17 "Segment Reporting".

4. Based on information received from its suppliers the Company has no amounts due to Micro ad Small enterprises as at 31 March 2010 (as at 31 March 2009 Rs. Nil).

5. In the opinion of the Directors current assets and loans and advances are approximately of the value stated, if realised in the ordinary course of business.

6. Previous period figures have been regrouped or rearranged, wherever considered necessary. Figures in bracket are in respect of previous period. Previous periods figures which were from 07 October 2008 to 31 March 2009 as such the same are not comparable with current years figure which are for 12 months.

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